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Home My WebLink AboutR-2077 - Amending Hartford Deferred Compensation Plan.,, RESOLUTION ;(011 A resolution amending the City of Marysville Hartford Deferred Compensation Plan. WHEREAS, the City of Marysville ("Employer") previously established a Deferred Compensation Plan ("Plan"); and WHEREAS, the Employer desires to amend the Plan to conform with changes in the federal law brought about by the Economic Growth and Tax Relief Reconciliation Act of 2001 ("EGTRRA"); and WHEREAS, the Employer in good faith complies with the requirements of EGTRRA and guidance issued thereunder by adopting this amendment, and WHEREAS, this amendment shall supersede the provisions of the Plan to the extent those provisions are inconsistent with the provisions of this amendment NOW THEREFORE, BE IT RESOLVED. that, effective January 1, 2002, the Employer hereby amends the Plan as follows: Contribution Limit -The maximum amount a Participant may defer during a calendar year to this and/or any other Eligible Deferred Compensation Plan shall not exceed the lesser of: (i) the applicable dollar amount as set forth in Section 457(e)(15) of the Internal Revenue Code ("Code");or (ii) 100% of the Participant's Includible Compensation. Includible Compensation - means compensation from the Employer, within the meaning of Code Section 415(c){3) and the regulations thereunder. Pre-Retirement Catch-Up Contribution -The maximum amount a Participant may defer under Section 457(b){3) of the Code each calendar year to this or any other Eligible Deferred Compensation Plan shall not exceed the lesser of: (1) twice the applicable dollar limit as set forth in Section 457(e)(15) of the Code, or (2) the applicable dollar limit as set forth in Section 457(e)(15)of the Code plus any Employer provided compensation eligible for deferral that was not deferred for any prior taxable year which began after December 31, 1978. Age 50+Catch-Up Contribution - All Participants who have attained age 50 before the close of the plan year shall be eligible to make catch-up contributions in accordance with, and SUbject to the limitations of, Section 414(v) of the Code. Such contribution shall not, with respect to the year in which the contribution is made, be subject to any otherwise applicable limitation contained in Section 457 of the Code, or be taken into account in applying such limitations to other contributions or benefits under this Plan or any other plan. The maximum amount that may be deferred under this Plan for any calendar year by a Participant eligible for both the pre-retirement catch-up contribution under Section 457(b)(3) of the Code and this age 50+ catch-up contribution is the greater of the maximum amount that may be deferred under the contribution limit at Section 457(b){2) of the Code, plus any age 50+ catch-up contribution allowed under this section, or the pre-retirement catch-up contribution limit at Section 457(b)(3) of the Code. ------------------------------------ Rollover Contribution -An Employee may contribute a Rollover Contribution to the Plan. A Rollover Contribution is a Participant contribution or a direct rollover of an eligible rollover distribution as defined under Section 402(c)(4) of the Code. The Plan Administrator may require the Employee to certify, either in writing or in any other form permitted under rules promulgated by the IRS, that the contribution qualifies as a Rollover Contribution under the applicable provisions of the Code. If it is later determined that all or part of a Rollover Contribution was ineligible to be contributed to the Plan, the Plan Administrator shall direct that any ineligible amounts, plus earnings or losses attributable thereto (determined in a uniform and nondiscriminatory manner) be distributed from the Plan to the Employee as soon as administratively feasible. Separate accounting shall be maintained by the Plan Administrator for any Rollover Contributions not attributable to an Eligible Deferred Compensation Plan. Rollover Contributions will be nonforfeitable at all times. Distribution Eligibility -All references to "separation from service" contained in the Plan are hereby replaced with "severancefrom employment.". Installment Payments -Upon becoming eligible for a distribution, a Participant may elect to receive so much of his or her Participant Account in installment payments made at least annually. A Participant may elect to vary the amount or frequency of any such payments at least once each calendar quarter. However, at no time may the installment payment period exceed the Participant's life expectancy. Distribution On or After Age 70-1/2 or Severance From Employment - Upon becoming eligible for a distribution. a Participant may elect to commence distribution of his or her Participant Account in accordance with the payment options available under the Plan. A Participant who wishes to receive a distribution must submit a request to the Plan Administrator. Upon a valid request, distribution will commence as soon as administratively feasible. Distribution On Account of the Participant's Death - In the event of the Participant's death, if distribution has not commenced prior to the death of the Participant: (a) a non-spousal beneficiary must either; (i) elect a distribution payable over a period not extending beyond the life expectancy of the beneficiary, commencing no later than the end of the calendar year following the calendar year in which the Participant died; or (ii) elect a single-sum payment to be made no later than the end of the calendar year which contains the fifth anniversaryof the date of death of the employee, otherwise, such single-sum payment shall be made by the end of such calendar year. (b) a spousal beneficiary may elect a single-sum payment or distribution payable over a period not extending beyond the life expectancy of the spousal beneficiary. Distribution to the spousal beneficiary must commence on or before the later of: (i) the calendar year immediately following the calendar year in which the Participant died; or (ii) the year the deceased Participantwould have reached age 70-1/2. Minimum Distribution Requirements - Notwithstanding anything in this plan to the contrary, distribution from the Plan shall commence and be made in accordance with Section 401(a)(9) of the Code and, until the last calendar year beginning before the effective date of the final regulations under section 401(a)(9) or such other date as may be published by the Internal Revenue Service, the regulations under section 401(a)(9) that were proposed on January 17, 2001. Participants must commence distribution no later than April 1s following the later of (i) the calendar year in which the Participant attains age 70-1/2 or (ii) the calendar year in which the Participant retires. Domestic Relations Orders -No benefit or interest available hereunder will be subject to assignment or alienation, either voluntarily or involuntarily pursuant to a domestic relations order, unless such order is determined to be a qualified domestic relations order, as defined under Section 414(p) of the Code. Direct Rollovers - A distributee may elect to have all or any portion of an Eligible Rollover Distribution paid directly to an Eligible Retirement Plan specified by the distributee. For purposes of this section an Eligible Rollover Distribution means any distribution of all or any portion of the balance to the credit for the distrbutee, except that an Eligible Rollover Distribution does not include: any distribution that is one of a series of substantially equal periodic payments (not less frequently than annually) made for the life (or life expectancy) of the distributee or the joint lives (or joint life expectancies) of the distributee and the distributee's designated Beneficiary, or for a specified period of ten years or more; any distribution to the extent such distribution is required under Section 401(a)(9) of the Code; or any amount that is distributed on account of hardship. For purposes of this section an Eligible Retirement Plan means an eligible retirement plan that is an individual retirement account described in Section 408(a) of the Code, an individual retirement annuity described in Section 408(b) of the Code, an eligible deferred compensation plan described in Section 457(b) of the Code which is maintained by an eligible employer described in Section 457(e)(1)(A) of the Code, an annuity plan described in Section 403(a) of the Code, an annuity contract described in section 403(b) of the Code, or a qualified trust described in Section 401(a) of the Code, that accepts the distributee's eligible rollover distribution. The definition of eligible retirement plan shall also apply in the case of a distribution to a surviving spouse, or to a spouse or former spouse who is the alternate payee under a qualified domestic relation order, as defined under section 414(p) of the Code. For purposes of this section, a distributee includes an Employee or former Employee. In addition, the Employee's or former Employee's surviving spouse and the Employee's or former Employee's spouse or former spouse who is the alternate payee under a qualified domestic relations order, as defined under section Section 414(p) of the Code, are distributees with regard to the interest of the spouse or former spouse. For purposes of this section a Direct Rollover is a payment by the Plan to the Eligible Retirement Plan specified by the distributee. Distribution for Certain Non-Participating Participants - Rollover Contributions are excluded in determining whether the total amount of a Participant's Account under the Plan exceeds the dollar limit under Section 411(a)(11)(A) of the Code. ",' Transfers In- If a transfer is associated with a distributable event and the Employee is eligible to receive an eligible rollover distribution as defined under Section Section 402(c)(4) of the Code. such transfer will be considered a Rollover Contribution. Transfers Out - If a transfer is associated with a distributable event and the distribution is an eligible rollover distribution as defined under Section 402(c)(4) of the Code, such transfer will be considered a Direct Rollover. Trustee to Trustee Transfers to Purchase Permissive Service Credit - A Participant may elect to have all or a portion of a his/her Participant Account directly transferred to a defined benefit governmental plan (as defined under Section 414(d) of the Code) if such transfer is: (a) for the purchase of permissive service credit (as defined under Section 415(n)(3)(A) of the Code) under such plan; or (b) a repayment to which Section 415 of the Code does not apply by reason of subsection (k)(3) thereof. IN WITNESS WHEREOF. the Employer has executed this Plan Amendment this Mayor APPROVED AS TO FORM: /)~K.0J..R.&J? Marysville City Attorney ;:;!.ooz.._ Its